BT 2002 Annual Report Download - page 103

18. Acquisitions and disposals continued
The gain on the transfer of the assets is unrealised since the group continues to maintain a 50% interest in the assets
contributed. This gain has been taken to a non-distributable reserve and is shown in the statement of total recognised
gains and losses for the year ended 31 March 2000. There is no tax charge on the gain.
During the year ended 31 March 2001, the group's share of Concert's opening net assets was amended, due to
certain true up contributions, reducing the unrealised gain by £49 million. This is shown in the statement of total recognised
gains and losses for the year ended 31 March 2001.
Concert was unwound on 1 April 2002 as disclosed in note 30.
Acquisition of associates and joint ventures
Year ended 31 March 2002
Blu
l
£m
Group share of original book value of net assets and fair value to the group 16
Goodwill 50
Total cost 66
Year ended 31 March 2001
Telenordia
m
£m
J-Phone
n
£m
Group share of original book value of net assets and fair value to the group 10 5
Goodwill 84 ±
Total cost 94 5
Year ended 31 March 2000
Japan
Telecom
o
£m
AT&T
Canada
p
£m
Rogers
Cantel
Mobile
Communi-
cations
p
£m
SmarTone
Mobile
Communi-
cations
p
£m
Other
p
£m
Group share of original book value of net assets 871 101 11 96 34
Fair value adjustment to achieve consistency of accounting policies (49) ± ± ± ±
Fair value to the group 822 101 11 96 34
Goodwill 432 259 288 145 51
Total cost 1,254 360 299 241 85
l
On 31 January 2002, one of the venture partners in Blu exercised a put option for BT to purchase a 9% interest for
£66 million. The cost of £66 million arising on this purchase has been written off. In addition the value of BT's investment
has been reviewed and provision has been made for the associated impairment and exit costs.
m
On 8 September 2000, BT increased its existing 33% interest in Telenordia, based in Sweden, to 50% for £94 million.
Goodwill was being amortised over 20 years until its disposal in October 2001.
n
On 8 May 2000, the group acquired a 40% interest in a company, with Japan Telecom owning the other 60% interest,
which holds a 74% interest in J-Phone Communications Co. Limited (JPC). JPC in turn acquired controlling interests,
averaging 51%, in nine regional Japanese mobile phone J-Phone companies. These J-Phone companies merged into three
larger regional companies during the year ended 31 March 2001. Japan Telecom also held a direct 18% interest, in the
J-Phone companies.
During the year ended 31 March 2001, the group held an effective 23% interest in J-Phone. The impact of the
combined J-Phone/Japan Telecom ownership structure, however, led the group to re¯ect 63% of the J-Phone results at
the turnover and operating pro®t levels and all items below including interest and taxation, in accordance with the
requirements of FRS 9. In June 2001, the group sold this interest (note 7).
o
On 31 August 1999, the group completed its acquisition of a 30% interest, jointly with AT&T Corp, in Japan Telecom, a
leading Japanese telecommunications company. Japan Telecom was held through a BT subsidiary company, 66.7% BT
owned and 33.3% AT&T owned. The group had a 20% economic interest. AT&T's economic interest was shown within the
group's minority interests. Goodwill on this acquisition was being amortised over 20 years until the date of disposal.
On 31 March 2001, the 30% interest in Japan Telecom had a market value equivalent to £1,607 million
(2000 ± £3,398 million), compared with a carrying value of £1,282 million (2000 ± £1,345 million). In April 2001, the group's
direct interest in Japan Telecom was reduced to its 20% economic interest, and in June 2001 the group sold this interest
(note 7).
Notes to the financial statements
102 BT Group Annual Report and Form 20-F 2002